Endeavour Silver (NYSE:EXK) executives outlined what CEO Dan Dickson called a “transformational” 2025 during the company’s fourth-quarter and year-end results call, highlighting the Kolpa acquisition, Terronera reaching commercial production, the sale of the Bolanitos mine, and financing intended to support advancement of the Pitarrilla development project.
Terronera update: security-related pause and ramp-up progress
Dickson said Terronera operations were temporarily impacted by recent security events in Mexico and a “Code Red” mandate in Jalisco that required civilians to shelter in place. Endeavour paused Terronera operations Sunday evening and resumed Wednesday, February 25, after supply routes were confirmed secure. He said the company will continue monitoring developments and emphasized employee and contractor safety.
Management also discussed a transition to liquefied natural gas (LNG) power. Dickson said permits to operate the LNG plant have been received, the connection point is being completed in the first quarter, and the LNG provider is awaiting a site storage permit expected in the coming weeks. Endeavour expects to be on LNG power in the second quarter of 2026, which management said should improve electrical reliability and reduce power costs.
2025 production and financial results
According to Dickson, Endeavour produced 11 million ounces of silver-equivalent metal in 2025, including base metal output from Kolpa, representing a 48% increase versus 2024. In the fourth quarter, the company produced 2 million ounces of silver and 14,000 ounces of gold, totaling just under 4 million silver-equivalent ounces. Management attributed the year-over-year increase to the addition of Kolpa and Terronera and higher grades at Bolanitos.
For the year, Endeavour reported record revenue of $468 million, up 115% from 2024. The company cited cost of sales of $385 million, mine operating earnings of $83 million, and mine operating cash flow before taxes of $156 million.
In the fourth quarter, Endeavour reported adjusted net earnings of $4.8 million, or adjusted earnings of $0.02 per share. Management said results were affected by realized losses from derivative contracts and higher financing costs related to early repayment of a debt facility.
Costs: ramp-up impacts, power transition, and price-linked items
Management said direct operating costs per ton increased 8% in 2025, driven largely by elevated costs at Terronera during its initial quarter of production. Dickson said the company expects costs to decline as Terronera transitions from diesel to LNG power in the second quarter of 2026, completes demobilization of the construction team, implements workforce and logistics optimization plans that began in January, and maintains throughput at 2,000 tons per day through 2026.
Dickson also described how the company’s cost measures are affected by commodity prices. He said direct costs per ton include royalties, mining duties, and third-party material purchases, which rise with higher metal prices. As an example, he said for every $1 increase in silver, direct cost per ton rises by about:
- $0.90 at Terronera
- $0.50 at Kolpa
- $3.80 at Guanaceví
All-in sustaining costs (AISC), net of byproduct credits, were described as elevated in the quarter due to higher royalties, duties, third-party ore purchases, higher corporate G&A, and the addition of Terronera. Management noted Terronera’s AISC included $16.3 million of capital expenditures in the quarter—described as including one-time investments related to new mining operations—which management expects to decrease as 2026 progresses.
Executives also discussed cost sensitivity in a higher-price environment. Dickson said Endeavour pays a significant royalty at Guanaceví (16% to Minera Frisco on key concessions) and continues to process “tolled ore,” noting that in Q4 approximately 20% of throughput was tolled ore. He added that while margins can remain strong, royalties, duties, and purchased ore costs can lift reported costs per ton at higher prices.
Balance sheet, hedging, and currency exposure
Endeavour ended 2025 with $215 million in cash, which management said provides flexibility to advance strategic initiatives, including ongoing technical work and economic evaluation at Pitarrilla. Dickson also noted a $350 million convertible debt offering completed in December to strengthen the balance sheet and support advancement of the Pitarrilla asset.
Asked about derivatives, Dickson said a project loan facility used to build Terronera required hedging 68,000 ounces of gold. The company locked the gold price in March 2024 at $2,325 and had about 50,000 ounces remaining as of December 31. He said the gold hedge is expected to unwind through 2026 into 2027, completing in the second quarter of 2027. Dickson added Endeavour’s policy is generally not to hedge silver, and he characterized the gold hedge as tied to a byproduct requirement under the facility.
On foreign exchange, CFO Elizabeth Soralis said the company had Mexican peso hedges in place, with remaining hedges around 19 pesos to the U.S. dollar at the end of 2025, but “not very many left.” She said it is difficult to hedge at 17 pesos to the U.S. dollar and that the company will take opportunities to hedge when appropriate. Soralis also said adding Kolpa reduced the company’s percentage exposure to the Mexican peso, noting the Peruvian sol is “more steady” for the company.
Outlook: Terronera grades, Kolpa expansion, and Pitarrilla timeline
On Terronera’s mine plan and grades, Dickson said the company intentionally began ramp-up in lower-grade areas to avoid sending ounces to tailings during early recovery optimization. He said grades are aligning with plan and should improve gradually quarter by quarter as the mine advances toward the “main chute” in the second half of the year. In response to an analyst question, he said higher-grade material in the early mine plan (in the range of roughly 230 to 280 grams per ton silver) is expected to come in 2027.
At Kolpa, Dickson said Endeavour is progressing an expansion to increase plant capacity from 2,000 tons per day to 2,500 tons per day. He said the team received a construction permit in December and expects to begin testing a new ball mill relatively shortly, around March. While an operating permit is still required after construction, management said the circuit can be tested and the company hopes to be approaching 2,500 tons per day in the second quarter.
For Pitarrilla, Dickson said Endeavour plans to invest $68 million in 2026, including completion of an NI 43-101 feasibility study targeted for the third quarter of 2026 and early work such as commencing a construction camp, advancing ramp development through the manto, and procuring long-lead equipment to support engineering. Management said it is positioning Pitarrilla for a construction decision in early 2027. On permitting, Dickson said the plant and underground mining are already permitted and the company is awaiting a tailings storage facility permit for a dry-stack design, with an aim to receive that permit in the first quarter of 2027.
Separately, Soralis said the sale of Bolanitos closed January 15 and will be recognized in the first quarter. She said the company expects an accounting gain in Q1, noting the asset was carried at around $25 million at year-end and sold for approximately $50 million, subject to accounting adjustments including the value of shares received.
About Endeavour Silver (NYSE:EXK)
Endeavour Silver Corp. is a Vancouver-based precious metals mining company focused on the acquisition, development and operation of silver and gold properties in Mexico. Publicly listed on the New York Stock Exchange under the ticker EXK, the company has positioned itself as a mid-tier producer with a portfolio of high-grade, operating mines and exploration assets in key mineral belts.
Endeavour Silver’s core business activities revolve around four principal underground mines located in the states of Durango, Zacatecas, Guanajuato and Jalisco.
